Industry Comes of Age

Spanning the Continent with Rails Union Pacific Railroad Commissioned to build trans-continental railroad Credit Mobilier Scandal Overcharged for railroad building Used bribes to congress Central Pacific Railroad Built tracks from California to meet with the Union Pacific tracks Immigrant Labor Both companies relied on immigrant labor Irish and Chinese

Revolution by Railways Helped unite the nation Opened up trade Fueled Industrialization Opened new markets Fueled steel industry Fueled immigration

Government controls the Railroads Railroads filled with Coruption and Greed Interstate Commerce Act Federal regulation of railroads Created Interstate Commerce Commision To enforce rules Helped stabilize the Railroad Industry

Causes for Industrialization More wealth available Massive Immigration American Indenuity Eli Whitney Cotton Gin and Interchangeable Parts Alexander Graham Bell Telephone Thomas Edison Electric Lightbulb

Andrew Carnegie Controlled every phase of Steel Production Vertical Integration (Vertical Monopoly) Control all phases of manufacturing “Gospel of Wealth” Wealthy had moral responsibility to society

John D. Rockefeller Standard Oil Company Controlled oil refineries Horizontal Integration (Horizontal Monopoly) Also known as trusts Control all of one phase of manufacturing by buying out or bringing together many firms

The Supremacy of Steel Railroads and new machines fueled steel industry Bessemer Process Greatly reduced the time it took to produce steel

Social Darwinism Survival of the Fittest applied to society/business

Government Tackles the Evil Trust Sherman Anti-Trust Act Forbid Monopolies Forbid combination of companies that would result in restraining trade or commmerce Not very effective

Impact of Industrialization General increase in wealth Urbanization Factory System New roles for Women Poor working/living conditions

In Union there is Strength Causes for Unions Poor Working Conditions Low Wages Needed voice over factory owners Unions Workers organize to improve working conditions

Knights of Labor Union welcomed many different groups Wanted safer working conditions and 8 hour work days Strikes Gave unions power over factory owners Haymarket Square Riot Bomb set off during demonstration Knights of Labor lose influence American Federation of Labor Split from the Knights to form new union